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Reported on Tue, 11 Jul 2006

Over 150,000 businesses closed down last year due to financial strain, but a business loan could help failing businesses to get back on track.

A new tool has been launched by the Institute of Chartered Accountants and the British Bankers' Association offering a fee financial health check for small businesses concerned about their money matters.

The tool will ask a series of questions abut issues relevant to the finances of small businesses, ranging from cash-flow to administration costs and sale projections.

Lindsay Frize, e-marketing manager at Business Link Lancashire, highlighted the special attention small businesses should pay to their finances.

"Whether you are starting up or looking to expand, businesses …should always make managing finances and cash flow a priority," she said.

Taking out a business loan could help businesses to remedy any problems flagged up by the financial health check and help to cover the cost of employing an account to deal with an area that can seem "daunting".

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